On the IRS website, there’s an option to view all of its current forms. Click the link and you’ll be greeted with a total of 2,263 files ranging from instructions on filing quarterly federal tax returns to guides about starting a business and keeping records.
Thankfully, the vast majority of these forms won’t apply to you and are only used for specific reasons. Even so, there will be a number of forms you need to know about to meet your tax obligations and avoid IRS issues.
To make things as easy as possible, here’s a guide to the most important tax documents.
The Big One: Form 1040
Form 1040 is the form used to calculate your tax bill after you tally your income and deductions. The “long form” itself is only two pages long, but you’ll need to complete 70+ lines and various other forms too.
There are three 1040 forms used by the IRS, with rules about which ones you can use:
- Form 1040EZ – Primarily for people under 65 who have very simple situations and can’t claim any credits or deductions (the only exception is Earned Income Tax Credit (EITC)). Your taxable income has to be less than $100,000.
- Form 1040A – Also suitable for simple tax situations, this form enables you to claim certain tax credits as well as deduct your student loan interest, IRA contributions and a handful of other things. Again, your taxable income must be under $100,000.
- Form 1040 – The standard form that anyone can use regardless of filing status. You can itemise and claim all allowable deductions and credits.
In order to file, you may also be sent the following forms:
The W-2
When you start a job, you’ll give your employer the W-4 form that instructs them how much tax to withhold from each paycheck. The W-2 form is what your employer sends back in January or February.
Among other things, the W-2 form shows how much you earned, what you contributed to your company’s retirement plan and the amount of taxes withheld on your behalf. This information must be accurate, as a copy gets sent to the IRS.
Form 1098
If you have a mortgage, you’ll receive form 1098 in the mail. It shows the interest you paid on your home loan that year, which is generally deductible.
If you’re a student, you may also get a 1098-T form, which reports tuition payments you’ve made, or a 1098-E form, which reports the interest you’ve paid on student loans. Once again, loan interest and tuition payments may be deductible.
Form 1099
There are four variants of the 1099 form, all of which show income you’ve received from a source other than your employer. Whoever sent you one will have also done the same with the IRS, so you’ll need to report it on your return.
- 1099-DIV – Reports dividends and distributions from investments.
- 1099-INT – Reports interest you earned on investments.
- 1099-OID – When you buy a bond or note for less than face value.
- 1099-MISC – For everything else not derived from investments, such as money a client paid for freelance work.
For more information on forms and publications, visit the IRS website.
